According to the circular numbered 27998389-010-06-02-5820 released by the General Directorate of Budget and Fiscal Control on 07.01.2017 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective as of 01.07.2017.

a. Income Tax Exempted Severance Pay

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2017 – 31.12.2017 maximum severance pay to be exempted from income tax is 4.732,48.- TL,

According to the General Communiqué on Withholding Tax Return and Premium Service Statement, announced on the 29983 numbered Official Gazette dated 18.02.2017, the firms’ tax identification number and Social Security Institution (SSI) registration number were required to match on the system of the Revenue Administration until the date 31.03.2017. This period has been extended until 02.05.2017.

Withholding Tax Returns and Social Security Institute Declarations are to be combined: Withholding Tax and Premium Service Return

Pursuant to the “Law on Amendments to Certain Laws for Improving the Investment Environment” as published in the Official Gazette no. 29796 on 09/08/2016, the first steps towards combining the Withholding Tax Return and Monthly Premium & Service Declaration (Social Security Institute (SSI) Declaration) have been taken. The Ministry of Finance Communiqué published in the Official Gazette on 18 February 2017 lays down the details of the implementation of this process.

Each year, the rent income earned by real persons are declared to the respective tax office with the Annual Income Declaration until 25th of March. The types of income that are within the scope of GMSI except for the rent incomes, are stated in the Income Tax Law Number 70. In the below table only information is provided for rent income from residental and commercial places. For further detailed information please contact your customer representative or an expert.